In compound interest the amount in interest is added to the original at the end of each year. So the next year the interest is worked out on a larger amount of money.

Malcolm invests £600 into a saving account which has an interest rate of 2% pa (per annum).

Calculate the total amount he will receive if he leaves the money untouched for 4 years.

Round to the nearest penny.

£612

£640

£649.46

Julia invests £5200 into a savings account which has an interest rate of 3.4% pa.

Calculate the amount she would have in her account after 3 years if she leaves the money untouched. Round to the nearest penny.

£5376.80

£5376.60

£5748.64

Alice buys a car costing £7500. It depreciates in value each year by 7%.

How much had the car depreciated to after 2 years? Round to the nearest penny.

£5953.48

£6486.75

£6975.00

Sarah buys a car costing £12,500. It depreciates in value by 8% in the first year, 10% in the second year and 5% in the third year.

What is the car worth after 3 years? (Round to the nearest penny).

£9832.50

£10350.05

£11500.10

Dave buys a painting which cost him £250.

It appreciates in value by 16% in the first year and then 21% in the second year.

By how much had the painting appreciated after 2 years?

£100.90

£290.00

£302.50

It is estimated that an iceberg weighs 84,000 tonnes.

As the iceberg moves into warmer water, its weight decreases by 25% each day.

What will the iceberg weigh after 3 days in the warmer water?

35,437.5 tonnes

63,000 tonnes

164,062.5 tonnes

A local council recycles 42,000 tonnes of waste a year.

The council aims to increase the amount of waste recycled by 8% each year.

How much waste does it expect to recycle in 3 years time?

32704.896 tonnes

45360 tonnes

52907.904 tonnes

Hector buys an antique chair for £600.

It is expected to increase in value at the rate of 4.5% each year.

How much is it expected to be worth in 3 years time?

£522.59

£627

£684.70

Diana puts £3,500 into an account that pays interest of 4% per annum (every year).

How much will be in the account after 3 years?

£3096.58

£36400

£3937.02

A vineyard produced 250 kilograms of grapes in 2005.

It is estimated the vineyard will be able to increase production at a rate of 3% p.a. for the next 5 years.

Calculate the weight of grapes that will be produced in 5 years time.

214.68 kilograms

257.5 kilograms

289.8 kilograms